Crown Wood Limited (07410930): administration
- Status
- Administration ended
- Administration began
- 2017-03-16
- Administrators
- Philip James Watkins, Anthony John Wright
- Administrators' firm
- FRP Advisory
- Incorporated
- 2010-10-18
- Location
- London
- Industry
- 31020 Manufacture of kitchen furniture
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
The Company was incorporated in October 2010 and ran a bespoke kitchen and cabinet making business, which was transferred from Crown Wood Products Limited, which had traded since the mid 1980’s.The Company had approximately 25 staff with an average turnover of approximately £2m over the last two years. The Company’s principle place of business was Units 7-10, Radford Crescent, Billericay, Essex, CM12 ODU (“the Property”).
In 2015 the Company came under financial pressure from reduced order volumes, which in turn led to creditor pressure from HMRC. As a result the Company and the Bank sought advice from FRP who were successful in helping the Company agree a formal Time to Pay Agreement (CTTP") in respect of the arrears of PAYE, NIC and VAT.
The TTP agreed in 2015 was successfully discharged but more recently the business again became loss-making due to reduced order volumes in the first quarter of 2017 and an increase in bad debts. Operations were funded via an overdraft facility provided by the Bank and from funds advanced to the Company from the director in his personal capacity. In February 2017 the overdraft facility entered into excess and the director was unable to continue to fund the business and it became evident the Company was in financial distress, At this time the director, with agreement from the Bank, sought advice from FRP.
Administrators' statement of proposals (2017-05-16) · Companies House register